By M H Ahssan
CHANGES IN THE INTERNATIONAL ECONOMY HAVE CREATED TREMENDOUS JOB OPPORTUNITIES FOR STUDENTS,WHO HAVE DEGREES IN THE STEM (SCIENCE, TECHNOLOGY, ENGINEERING AND MATHEMATICS) SUBJECTS. TIM ROGERS PRESENTS THE EFFORTS MADE BY INSTITUTIONS AND REGULATORY BODIES TO PROMOTE THE STEM SUBJECTS,AND THE OPPORTUNITIES THAT LIE THEREIN.
With an increasing number of national governments and transnational organisations like the European Union switching their priorities to assist the development of knowledge-focused economies, the emphasis on encouraging more graduate students to opt for Science, Technology, Engineering and Mathematics (the commonly termed STEM group of academic subjects) master’s and PhD degrees, is greater than ever before. The change in popularity has undoubtedly been due, in part, to the expansion of the international technology sector and the re-entrenchment of science and engineering as central to modern economic success.
Excellent employment prospects
As investment in research and development continues to grow and is supported by more open government policies, the growth of the science and technology sectors is likely to continue at an increasing pace over the next 20 to 30 years.
The shift to a more technologically and scientifically driven global economy can only be good news for international graduates in the STEM subjects. With the number of appropriately-qualified STEM graduates below the level of current global demand, employment prospects are buoyant, even in light of the current economic uncertainty. Countries as diverse as China, Denmark, Finland and Malaysia have prioritised so-called innovation strategies to develop their capacity in research and development in the fields of biotechnology, information technology, mobile communications and genetic research, all of which require skilled master’s and PhD graduates. Such demand is likely to only increase.
According to the executive search firm Heidrick and Struggles’s 2007 Mapping Global Talent report, developed in association with the Economist Intelligence Unit, the demographic patterns of China and India, coupled with the countries’ strong focus on the STEM subjects will have a profound impact on both their national and the international labour markets: “We can predict that these two countries will yield an increasing number of talented graduates in the hi-tech sector, given their strong tradition of engineering and science at the university level.”
Attracting STEM graduates
The likelihood of an altered global employment scene is acknowledged by many governments around the world to such an extent that special initiatives to encourage and capture STEM graduates are now commonplace. The UK Government has recently embarked on a number of programmes to encourage more research and development in the STEM subject areas and attract talented master’s and PhD graduates to either come and work in the UK, or to remain in the country after their programme of study has been completed. The UK has similarly extended its focus to securing more STEM graduates through a number of subject-specific projects, all of which have potentially important consequences for international graduate students. One of the projects, ‘Stimulating Physics’, is intended to encourage more students to pursue physics at universities in the UK.
Making STEM subjects central
In India, where the financial liberalisation of the 1990s has underwritten an expansion of almost every sector of the economy, the likes of which have never been seen before, the demand for skilled STEM graduates is already outstripping supply by a clear margin. With so many Indian students pursuing STEM master’s and PhD programmes in countries such as Canada, the UK and the US, it is likely that employment prospects back at home will be at least as competitive as those on offer in the West, as Indian companies compete on the world stage. Indian tech giant, Infosys, employs more than 90,000 people worldwide, 40,000 of whom are based in India, and routinely recruits directly from the campuses of Cal Tech, Imperial College and MIT to ensure its employees are of the very highest calibre. With approximately 12,000 new employees recruited annually by Infosys, 81 per cent of their intake this year will be qualified to a master’s or professional level. Tata Consultancy Services, another Indian IT specialist employer, hired 32,000 new employees in 2007-2008, simply to keep up with their own expansion plans.
A bright future for STEM graduates
Professor Heiko Schröder, Head, Royal Melbourne Institute of Technology’s School of Computer Science and Information Technology, a leading innovator in science and technology programmes, predicts a bright future for those graduating from STEM programmes. He affirms, “Worldwide, there are predictions that tell us that IT will grow again very significantly, and the shortage of jobs in the industry is already apparent, so we expect a growth in student numbers. We also know that industry investment in terms of IT, both computers and software, will grow more than ever before. American predictions are that the spending of companies on computers will grow by a factor of five in the next ten years, and spending on software will multiply by more than a factor of two, and this will make the spending on IT by far the biggest investment that companies have to make.”
A globally mobile workforce
The continuing globalisation of the science and engineering workforce in the US reflects the current broader international trend. As research and development funding crosses national borders, it is logical that the skilled workforce should become more internationally mobile. Conversely, employers now routinely seek candidates that are able to work in a globalised environment, and have experience of studying or working in another country. With the shortage of international talent likely to impact economic growth in industries, in and around the STEM subjects, perhaps there has never been a better time to consider a graduate programme in these areas.
Monday, December 29, 2008
POTENTIAL TO GROW?
By M H Ahssan
With recession raging in the US, many sectors are now on high alert, cutting costs - and employees. HNN evaluates the economic repercussions across sectors
Barely a year ago, the Indian economy was riding an unstoppable wave. The stock market reflected sentiments across sectors, as it surged forward at a scorching pace. But suddenly, the buoyant wave came crashing down - and took several people with it. As a generation that had received a legacy of opportunities, education and exposure to the world, on a proverbial platter, young students and professionals weren’t quite prepared for the slump.
Today, in a recession-threatened economy, while some sectors have witnessed large-scale layoffs and rising unemployment, others are showing signs of anecdotal downsizing. Here’s a brief update on the sectors that were once hot, and now perhaps, are not.
AVIATION
Although the aviation sector in India climbed to the ninth position in the world aviation market in 2007, 2008 witnessed the aviation sector
battling multiple demons - rising jet fuel prices, and later, the slump in business, as travellers chose cheaper modes of travel under threat of recession.
Kunal Vasudeva, Head, Kingfisher Training Academy, states, “From an output perspective, are most airlines recruiting? The answer is no. Will they recruit in the near future? Hopefully, yes. While earlier, airlines may have recruited 15 students, today just three or four make the cut. However, what’s important is that the current batch of students will graduate next June or July, and hopefully, the economy will tide over by then. The slump we’re witnessing right now is temporary.”
However, things aren’t quite as easy for students, who’ve already graduated. Ratan K* has completed his pilot training course, but has been unable to land a job as a pilot. He says, “There are no openings right now. Although we hope for the situation to improve in a couple of months, the fact is that there are about 6000 people looking for jobs, with maybe about 120 to 130 openings available only.”
BPO
Deepak Kapoor is Founder-CEO of www.bponews.in, and has also served on the board of the Call Centre Association of India and chaired its PR Committee. Kapoor acknowledges that although the sector is growing, it is doing so at a slower pace than before. He explains, “The banks that have been bailed out have to close a lot of bad loans. This process, called foreclosure, involves a great deal of paperwork, as does litigation work, another fallout of bad loans. If you look at operation floor ratios, you will find that the new work coming in is concerned with these two areas. This work is set to increase. Hence, larger companies are still getting a lot of high-value work. The challenge is to get our agents and employees trained in this work that is coming in.”
Kapoor adds that while employees are taking salary cuts of 10 to 15 per cent for a predefined period, there is no real risk to jobs. “You need customer support in various areas. However, selling has gone down, because indiscriminate selling of loans and credit cards is what has got banks into this situation in the first place.”
Vrinda P*, who works with an established BPO in Mumbai reveals, “There has been cost cutting on a large scale. For instance, though transport was available 24 hours a day previously, the schedule has changed to make it available only at certain times of the day. Also the appraisal cycle has changed for junior and mid-level employees from six months to one year.”
FINANCIAL SERVICES
In recent years, a career in the financial sector became the most coveted placement for innumerable MBA graduates, who could expect to land staggering packages, exceeding Rs one crore. However, the collapse of Lehman Brothers started a domino effect across the sector, with some areas being affected more than others.
Jyoti Vij, Director, Financial Sector, Federation of Indian Chambers of Commerce and Industry (FICCI), clarifies, “Insurance may not be as lucrative as it was a few months ago, but it is safer compared to other segments and will experience great growth in the future. Capital markets, brokerage firms and mutual funds are very dicey areas right now. However, private equity is growing fast. I think investment, venture capital, insurance and hedge funds will do well.”
According to Rishi Gupta, Chief Financial Officer, Financial Information Network and Operations (FINO), the economic downturn can be an opportunity for public banks to make a mark. He reveals, “Foreign banks have always been very selective, never indulging in mass recruitment. Moreover, while domestic, private sector banks have always recruited at a very high rate in order to meet the pace of growth, this pace has now slackened. Hence, public sector banks, for which public sentiment has been steadily improving, can now capitalise on this trend. In fact, I believe the State Bank of India has announced its plans to hire some 30,000 people, and UBI and Bank of Baroda are also on the same track.”
HOSPITALITY
Although India as a destination found its place in every tourist’s wishlist in 2007, in 2008, the hospitality sector has to contend with a double whammy - impending recession that cast a gloom over the sector, and then the 26/11 terror attacks that prompted a UK daily to include India in the list of the top 20 most dangerous places to visit, along with war-ravaged nations like Iraq and Afghanistan. However, the situation is not quite as bleak as one may
imagine.
Kanishk Malhotra, Managing Director, Hotel Solutions India, elucidates, “An occupancy of 70 to 80 per cent is generally considered a healthy occupancy level for a hotel, whether budget, luxury, or leisure. So far, according to reports, there has been a 20 per cent dip in the segment. If I have a 500-room hotel, I need a certain number of people to service rooms. If occupancy is down by 20 per cent (100 rooms less), I really don’t gain by terminating 20 to 30 people.”
Malhotra acknowledges though, that there has been a significant reduction in travel, more so in the commercial segment than in the leisure segment. “Companies involved in offshoring, IT, etc, are obviously cutting back on costs. Hence there have been changes in international and domestic travel,” he says.
HEALTHCARE AND PHARMA
As a sector that is driven by need, healthcare has been fairly recession-proof. India acquired the reputation of ‘First-world treatment at Third-world prices’, making it a hotspot for medical tourism. At last count, a US$ 35 billion industry in India, it is however, expected to eventually feel the pinch. Dr Aashish Contractor, Head, Preventive Cardiology and Rehabilitation, Asian Heart Institute, explains, “Healthcare involves a lot of elective procedures, which one does not necessarily have to do. I think ultimately, recession might affect areas that do not deal with lifethreatening problems, like cosmetic surgery or routine health check-ups for instance, which people believe they can postpone.”
A K Jain, Executive Director, Ipca Laboratories, asserts, “Pharma has been recession proof so far, because medicines are a must. You cannot delay treatment if it’s a serious situation. In fact because of lifestyle-related health problems, like stress, there will be more business. There may be some affect felt for three to six months due to currency fluctuations, and companies may delay plans for new investments, due to liquidity issues, but recession will not create a great impact. In fact, pharma companies can capitalise on this situation because production is now cost-effective due to lowered prices at all levels.”
IT & ITes
Instrumental in influencing the way the world today views India and its tremendous mind power, the IT sector placed India at the forefront of the international knowledge economy. The domestic IT market achieved a growth of 43 per cent in the fiscal year 2008, going from US$ 16.2 billion in FY 2007 to US$ 23.1 billion in FY 2008.
This formerly ‘stable’ sector, coveted by students and their parents, the IT sector is known to have taken a beating during the current economic downturn. Since it is exportfocused, the economic turmoil in the US has ensured a few months of uncertainty for the IT industry. At a press conference earlier this month, NASSCOM acknowledged that tech spending had definitely declined, and Som Mittal, President, NASSCOM was compelled to reiterate that the body would have to revise its forecast for the sector for this year (it had previously forecast a revenue growth between 21 and 24 percent to about $50 billion in the year to March 2009).
Ajoy Mukherjee, VP and Head, Global HR, Tata Consultancy Services, avers, “Current conditions are volatile, but we see significant opportunities for growth even in a tough economy. New opportunities are emerging in new growth markets and our services will play a significant role in global economic recovery. We remain cautiously optimistic about the external environment, and our hiring pattern reflects the same. We have added over 18,500 people in the first six months of the current fiscal, and are well on our way to meet our recruitment targets in the current financial year. We have also made over 24,000 campus offers in this year.”
Deepak Deshpande, former President, HR Infotech Association, an association of HR professionals in IT and ITes companies, adds, “According to a research report, there has been a sizable decline in anticipated hiring activity, although there has been no blanket ban on hiring. All said and done, the situation in India is not quite as gloomy as it is across the globe. There is still active hiring happening, and recruiter confidence is strongest in India.”
REALTY
The real estate sector is the second largest employment generator in India, after agriculture, and makes a sizable contribution to the GDP (five per cent). Moreover, it can be credited with the growth of several supporting industries like the cement or steel industries. At last count, the realty sector was enjoying an enviable growth rate of about 35 per cent, and was valued at approximately US$ 15 billion.
Today, the breakdown of the US housing market has spelled trouble for the sector in India. Sanjay Dutt, CEO (Business), Jones Lang LaSalle Meghraj, which offers leasing, consulting, research, and property and development services, asserts, “The residential real estate space has been severely affected because of the combined pressure from high interest rates and high property rates. There is also a slowdown in commercial real estate development, especially with IT, ITes and retail companies that are putting their expansion plans on hold. It is true that employers in the real estate space are letting people go, and this is happening across the board. There is now a liquidity crunch, as well as dwindling demand, making it difficult to complete projects. This is the time for realism. Investors have more or less left the market, leaving only real-end users, who do not buy for speculative purposes, only when there is a genuine need.”
RETAIL
The fifth largest retail destination globally, the Indian retail sector was ranked second after Vietnam as the most attractive, emerging market destination for investment in the retail sector, by AT Kearney’s seventh annual Global Retail Development Index (GRDI), in 2008. Moreover, according to ASSOCHAM, the Indian retail sector touched US$ 300 billion in 2007.
However, industry biggies acknowledged that the retail shimmer has dimmed somewhat,
Sanjay Jog, Chief People Officer, Future Group (Pantaloon, Big Bazaar), admits, “There is a slowdown in recruitment, but recruitment for front end operations (floor manager and below), are in full flow, as much as last year. We are not hiring in certain categories like merchandising, HR, finance, accounting and supply chain management. We had actually frozen recruitment six months ago, before recession, and were leveraging the resources we had.”
Jog clarifies that the value retail side (supermarkets) are not as affected as the lifestyle segment, although there are rationalisation of employee costs, like travelling economy instead of first, or staying at a guest house instead of a hotel. Prof Dr Uday Salunkhe, Group Director, Welingkar Institute of Management, agrees, saying, “Certain verticals within the retail sector may be impacted more so than others. Consumer electronics for instance does not appear to be as affected as the food and grocery segment.”
Nisha S*, who works with a major retail chain, reveals, “There are salary cuts in some organisations, and layoffs in support areas like IT, or in speciality formats, which companies believe are not working out as planned.”
MEDIA
The advertising industry recorded a growth of 22 per cent in 2007 to reach US$ 4.75 billion, contributing 38 per cent of the media and entertainment industry revenues. Abhinav P*, an executive with an international advertising group, presents a heartening picture for the sector, stating, “While market conditions may be adverse, companies are now looking to make more strategic investments in communication, to get people to get out and buy, since buying is, in fact, the only way out of a recession. We believe we’ll see this storm out.”
However, the US$ 5.48 billion TV industry and the US$ 3.62 billion print media segments may not be as fortunate. Dhrishti K*, a sales executive with a major, international television group, reveals, “Business is bad, revenues have dipped tremendously, and recruitment has been frozen, although layoffs haven’t begun yet. There is rumour of newer, smaller channels shutting shop. Media sales is now a tough area because the first place that companies budget is ad expenses. If they first advertised on five channels, they will now divert monies to only two in every genre, and thus, the fight for monies begins.”
No matter the situation with various sectors today, insiders believe that the Indian economy will be able to live out this phase, and when economic conditions improve, start another glorious cycle. What remains for us to do, is to strap in for the ride, and make informed choices while we wait out the storm.
With recession raging in the US, many sectors are now on high alert, cutting costs - and employees. HNN evaluates the economic repercussions across sectors
Barely a year ago, the Indian economy was riding an unstoppable wave. The stock market reflected sentiments across sectors, as it surged forward at a scorching pace. But suddenly, the buoyant wave came crashing down - and took several people with it. As a generation that had received a legacy of opportunities, education and exposure to the world, on a proverbial platter, young students and professionals weren’t quite prepared for the slump.
Today, in a recession-threatened economy, while some sectors have witnessed large-scale layoffs and rising unemployment, others are showing signs of anecdotal downsizing. Here’s a brief update on the sectors that were once hot, and now perhaps, are not.
AVIATION
Although the aviation sector in India climbed to the ninth position in the world aviation market in 2007, 2008 witnessed the aviation sector
battling multiple demons - rising jet fuel prices, and later, the slump in business, as travellers chose cheaper modes of travel under threat of recession.
Kunal Vasudeva, Head, Kingfisher Training Academy, states, “From an output perspective, are most airlines recruiting? The answer is no. Will they recruit in the near future? Hopefully, yes. While earlier, airlines may have recruited 15 students, today just three or four make the cut. However, what’s important is that the current batch of students will graduate next June or July, and hopefully, the economy will tide over by then. The slump we’re witnessing right now is temporary.”
However, things aren’t quite as easy for students, who’ve already graduated. Ratan K* has completed his pilot training course, but has been unable to land a job as a pilot. He says, “There are no openings right now. Although we hope for the situation to improve in a couple of months, the fact is that there are about 6000 people looking for jobs, with maybe about 120 to 130 openings available only.”
BPO
Deepak Kapoor is Founder-CEO of www.bponews.in, and has also served on the board of the Call Centre Association of India and chaired its PR Committee. Kapoor acknowledges that although the sector is growing, it is doing so at a slower pace than before. He explains, “The banks that have been bailed out have to close a lot of bad loans. This process, called foreclosure, involves a great deal of paperwork, as does litigation work, another fallout of bad loans. If you look at operation floor ratios, you will find that the new work coming in is concerned with these two areas. This work is set to increase. Hence, larger companies are still getting a lot of high-value work. The challenge is to get our agents and employees trained in this work that is coming in.”
Kapoor adds that while employees are taking salary cuts of 10 to 15 per cent for a predefined period, there is no real risk to jobs. “You need customer support in various areas. However, selling has gone down, because indiscriminate selling of loans and credit cards is what has got banks into this situation in the first place.”
Vrinda P*, who works with an established BPO in Mumbai reveals, “There has been cost cutting on a large scale. For instance, though transport was available 24 hours a day previously, the schedule has changed to make it available only at certain times of the day. Also the appraisal cycle has changed for junior and mid-level employees from six months to one year.”
FINANCIAL SERVICES
In recent years, a career in the financial sector became the most coveted placement for innumerable MBA graduates, who could expect to land staggering packages, exceeding Rs one crore. However, the collapse of Lehman Brothers started a domino effect across the sector, with some areas being affected more than others.
Jyoti Vij, Director, Financial Sector, Federation of Indian Chambers of Commerce and Industry (FICCI), clarifies, “Insurance may not be as lucrative as it was a few months ago, but it is safer compared to other segments and will experience great growth in the future. Capital markets, brokerage firms and mutual funds are very dicey areas right now. However, private equity is growing fast. I think investment, venture capital, insurance and hedge funds will do well.”
According to Rishi Gupta, Chief Financial Officer, Financial Information Network and Operations (FINO), the economic downturn can be an opportunity for public banks to make a mark. He reveals, “Foreign banks have always been very selective, never indulging in mass recruitment. Moreover, while domestic, private sector banks have always recruited at a very high rate in order to meet the pace of growth, this pace has now slackened. Hence, public sector banks, for which public sentiment has been steadily improving, can now capitalise on this trend. In fact, I believe the State Bank of India has announced its plans to hire some 30,000 people, and UBI and Bank of Baroda are also on the same track.”
HOSPITALITY
Although India as a destination found its place in every tourist’s wishlist in 2007, in 2008, the hospitality sector has to contend with a double whammy - impending recession that cast a gloom over the sector, and then the 26/11 terror attacks that prompted a UK daily to include India in the list of the top 20 most dangerous places to visit, along with war-ravaged nations like Iraq and Afghanistan. However, the situation is not quite as bleak as one may
imagine.
Kanishk Malhotra, Managing Director, Hotel Solutions India, elucidates, “An occupancy of 70 to 80 per cent is generally considered a healthy occupancy level for a hotel, whether budget, luxury, or leisure. So far, according to reports, there has been a 20 per cent dip in the segment. If I have a 500-room hotel, I need a certain number of people to service rooms. If occupancy is down by 20 per cent (100 rooms less), I really don’t gain by terminating 20 to 30 people.”
Malhotra acknowledges though, that there has been a significant reduction in travel, more so in the commercial segment than in the leisure segment. “Companies involved in offshoring, IT, etc, are obviously cutting back on costs. Hence there have been changes in international and domestic travel,” he says.
HEALTHCARE AND PHARMA
As a sector that is driven by need, healthcare has been fairly recession-proof. India acquired the reputation of ‘First-world treatment at Third-world prices’, making it a hotspot for medical tourism. At last count, a US$ 35 billion industry in India, it is however, expected to eventually feel the pinch. Dr Aashish Contractor, Head, Preventive Cardiology and Rehabilitation, Asian Heart Institute, explains, “Healthcare involves a lot of elective procedures, which one does not necessarily have to do. I think ultimately, recession might affect areas that do not deal with lifethreatening problems, like cosmetic surgery or routine health check-ups for instance, which people believe they can postpone.”
A K Jain, Executive Director, Ipca Laboratories, asserts, “Pharma has been recession proof so far, because medicines are a must. You cannot delay treatment if it’s a serious situation. In fact because of lifestyle-related health problems, like stress, there will be more business. There may be some affect felt for three to six months due to currency fluctuations, and companies may delay plans for new investments, due to liquidity issues, but recession will not create a great impact. In fact, pharma companies can capitalise on this situation because production is now cost-effective due to lowered prices at all levels.”
IT & ITes
Instrumental in influencing the way the world today views India and its tremendous mind power, the IT sector placed India at the forefront of the international knowledge economy. The domestic IT market achieved a growth of 43 per cent in the fiscal year 2008, going from US$ 16.2 billion in FY 2007 to US$ 23.1 billion in FY 2008.
This formerly ‘stable’ sector, coveted by students and their parents, the IT sector is known to have taken a beating during the current economic downturn. Since it is exportfocused, the economic turmoil in the US has ensured a few months of uncertainty for the IT industry. At a press conference earlier this month, NASSCOM acknowledged that tech spending had definitely declined, and Som Mittal, President, NASSCOM was compelled to reiterate that the body would have to revise its forecast for the sector for this year (it had previously forecast a revenue growth between 21 and 24 percent to about $50 billion in the year to March 2009).
Ajoy Mukherjee, VP and Head, Global HR, Tata Consultancy Services, avers, “Current conditions are volatile, but we see significant opportunities for growth even in a tough economy. New opportunities are emerging in new growth markets and our services will play a significant role in global economic recovery. We remain cautiously optimistic about the external environment, and our hiring pattern reflects the same. We have added over 18,500 people in the first six months of the current fiscal, and are well on our way to meet our recruitment targets in the current financial year. We have also made over 24,000 campus offers in this year.”
Deepak Deshpande, former President, HR Infotech Association, an association of HR professionals in IT and ITes companies, adds, “According to a research report, there has been a sizable decline in anticipated hiring activity, although there has been no blanket ban on hiring. All said and done, the situation in India is not quite as gloomy as it is across the globe. There is still active hiring happening, and recruiter confidence is strongest in India.”
REALTY
The real estate sector is the second largest employment generator in India, after agriculture, and makes a sizable contribution to the GDP (five per cent). Moreover, it can be credited with the growth of several supporting industries like the cement or steel industries. At last count, the realty sector was enjoying an enviable growth rate of about 35 per cent, and was valued at approximately US$ 15 billion.
Today, the breakdown of the US housing market has spelled trouble for the sector in India. Sanjay Dutt, CEO (Business), Jones Lang LaSalle Meghraj, which offers leasing, consulting, research, and property and development services, asserts, “The residential real estate space has been severely affected because of the combined pressure from high interest rates and high property rates. There is also a slowdown in commercial real estate development, especially with IT, ITes and retail companies that are putting their expansion plans on hold. It is true that employers in the real estate space are letting people go, and this is happening across the board. There is now a liquidity crunch, as well as dwindling demand, making it difficult to complete projects. This is the time for realism. Investors have more or less left the market, leaving only real-end users, who do not buy for speculative purposes, only when there is a genuine need.”
RETAIL
The fifth largest retail destination globally, the Indian retail sector was ranked second after Vietnam as the most attractive, emerging market destination for investment in the retail sector, by AT Kearney’s seventh annual Global Retail Development Index (GRDI), in 2008. Moreover, according to ASSOCHAM, the Indian retail sector touched US$ 300 billion in 2007.
However, industry biggies acknowledged that the retail shimmer has dimmed somewhat,
Sanjay Jog, Chief People Officer, Future Group (Pantaloon, Big Bazaar), admits, “There is a slowdown in recruitment, but recruitment for front end operations (floor manager and below), are in full flow, as much as last year. We are not hiring in certain categories like merchandising, HR, finance, accounting and supply chain management. We had actually frozen recruitment six months ago, before recession, and were leveraging the resources we had.”
Jog clarifies that the value retail side (supermarkets) are not as affected as the lifestyle segment, although there are rationalisation of employee costs, like travelling economy instead of first, or staying at a guest house instead of a hotel. Prof Dr Uday Salunkhe, Group Director, Welingkar Institute of Management, agrees, saying, “Certain verticals within the retail sector may be impacted more so than others. Consumer electronics for instance does not appear to be as affected as the food and grocery segment.”
Nisha S*, who works with a major retail chain, reveals, “There are salary cuts in some organisations, and layoffs in support areas like IT, or in speciality formats, which companies believe are not working out as planned.”
MEDIA
The advertising industry recorded a growth of 22 per cent in 2007 to reach US$ 4.75 billion, contributing 38 per cent of the media and entertainment industry revenues. Abhinav P*, an executive with an international advertising group, presents a heartening picture for the sector, stating, “While market conditions may be adverse, companies are now looking to make more strategic investments in communication, to get people to get out and buy, since buying is, in fact, the only way out of a recession. We believe we’ll see this storm out.”
However, the US$ 5.48 billion TV industry and the US$ 3.62 billion print media segments may not be as fortunate. Dhrishti K*, a sales executive with a major, international television group, reveals, “Business is bad, revenues have dipped tremendously, and recruitment has been frozen, although layoffs haven’t begun yet. There is rumour of newer, smaller channels shutting shop. Media sales is now a tough area because the first place that companies budget is ad expenses. If they first advertised on five channels, they will now divert monies to only two in every genre, and thus, the fight for monies begins.”
No matter the situation with various sectors today, insiders believe that the Indian economy will be able to live out this phase, and when economic conditions improve, start another glorious cycle. What remains for us to do, is to strap in for the ride, and make informed choices while we wait out the storm.
RECAP 2008: Education Sector Boom
By M H Ahssan
THE YEAR 2008 SAW A SEA OF CHANGE IN THE EDUCATION SECTOR. A NUMBER OF TRENDS WITNESSED A BOOM, WHEREAS OTHERS FAILED TO TAKE OFF. IN THIS YEAR-END ISSUE, HNN ANALYSES THE MOST PROMINENT TRENDS IN THE EDUCATION SEGMENT IN 2008.
As news of the economic slowdown hit Indian shores, the education sector, along with many other industries, underwent several changes. Whether it was students temporarily abandoning their study abroad plans, professionals choosing to go back to school, in order to spruce up their qualifications, institutes reporting a negligible slowdown in their placement rates, or the undecided fate of industry-academia tie-ups, there were both triumphs and tribulations in 2008.
STUDY ABROAD SENTIMENTS
While recession is poi sed to affect India in the long run, it might be a little early to determine how it is likely to affect Indian students' study abroad decisions. Hazel Shiromoni, Vice-President, CECN Global Schools, corroborates this view, saying, "Only after a span of a few months, can a pattern be identified. However, it is crucial to note that student enquiries for some courses, such as aviation, hospitality, travel and tourism are already going down." She goes on to add that the mindset of people, in terms of pursuing an education abroad will not change, and people from affluent sections of society will continue to send their children abroad. However, for the middle-class, particularly for those, who have invested in stocks, sending their children abroad may no longer be an affordable proposition.
Ajit Motwani, Director (India), Institute of International Education (IIE), reveals, "Most students applied for the fall session (September) before recession hit India, and were unlikely to be affected by it. Further, the spring semester has a small intake, so any real change in applications will only be visible in the fall session next year, when the affects of recession sink in."
Purti Simon, an alumni of St Xavier's College Kolkata, says, "I was forced to put my plans to study abroad on hold. It calls for a large expenditure and one would obviously look at recouping the investment. In the present scenario, international students are the first on the chopping block. I chose to postpone my plans till the economic situations are less volatile." However, while some students put their study abroad plans on hold, there were others who decided to go ahead with them anyway. Rini Mukherjee, who is pursuing Ancient Greek at the University of Cyprus, avers, "I continued with what I needed to do. If the recessional situation can subside in a year or two, it can also be reaffirmed. This is a good time to complete the academic experience, and hopefully, by the time my course ends, the economic situation will be better. If it isn't, there will tough competition, a phenomenon not exactly unknown to Indians."
However, it is noteworthy that the applications for a number of foreign universities in the UK, Australia and New Zealand, have only increased in the current year. Surya Ganesh Valmiki, Valmiki Group, discloses, "There has been a 60 per cent rise in the number of applications to universities in the UK. Also, Australia has become the preferred education destination because of its simpler visa process, as well as bright prospects of permanent residency. 48,500 visas were granted to Indian students, who had applied to universities in Australia." Moreover, Marina Gandhi, Head of East India, Education UK, British Council, also confirms an increase in the number of students, who had applied for further studies in the UK over that last year.
On the other hand, while the US is still one of the most favoured destinations, it is crucial to note that the US government rejected 70 per cent of visa applications this year. A major factor that adds to students woes is that a US visa is not easily acquired.
The choice of courses also did not witness any major changes. As Shekhar Niyogi, Education Consultant, Education Unlimited Inc, says, "The preferred programmes continue to be engineering, biological sciences and MBA."
BACK TO SCHOOL
B-Schools reported an increase in the number of applications for their full-time and executive MBA programmes. Dr Kondap, Vice- Chancellor, NMIMS University, reports that the institute expects a whopping increase of 10,000 more applications to their full-time MBA programme for the next year. However, Kondap is quick to add that the recession and the number of applications this year are mutually exclusive factors, although he agrees that recession may be the reason for the rise in the number of applications to the Executive MBA programmes.
Singapore-based Nanyang Technological University's Nanyang Business School too has already received 'more than double' the applications it received in December last year.
The number of freshmen at IIM-Lucknow in 2008 comprised only six per cent of graduates, without any professional experience. The rest have a minimum of two years of experience, and for various reasons, have decided to go back to school. THE Faculty of Management Studies (FMS), Delhi University, has received a record number of applications. This year, FMS received 70,000 applications for around 200 seats, up from 60,000 applications last year. However, J K Mitra, Dean, FMS, believes that the recession may not necessarily be behind the rise in the number of applications. He clarifies, "One can't be certain about the degree of influence that recession has exerted on students, who want to be admitted to the regular course. However, there will certainly be an impact on the number of applications for the part-time MBA programme at the institute."
Also, according to Anil Tandon, Principal, ICFAI, students prefer to go back to school now because they are aware that they would need to build their qualifications in order to have that extra edge if they want to excel.
While discussing the trend of going abroad, Dipanwita Ghosh, a Master's in Journalism student from American University, Washington, DC, says, "In order to tide over this phase, students are opting for courses, which require longer gestation periods, like a PhD or an MPhil. This is an attempt to simply pass the time in the most fruitful manner possible."
Pondering over the issue, Prafulla Agnihotri, Faculty, Marketing, IIM Calcutta, says, "The recession has not really affected the decisions of students, who want to pursue an MBA. Though there is no clear picture at hand now, the perceivable change will be palpable from the next financial year."
DIP IN PLACEMENTS?
The final placement season is currently underway in some B-Schools and management departments, and analysts are currently speculating about the possible effect of recession on placements. So far, students at these B-Schools are by and large, content with the placement opportunities.
The management departments that have started placements for their final batch include the Indian Institutes of Technology (IITs) at Chennai and Kanpur and Goa Institute of Management (GIM). According to the placement committee members from these institutes, apart from a 'dip' in financial sector companies, the profile and salary packages offered to students have 'stayed the same' and, in some sectors, they have become even better. Discussing the number of companies visiting the campus, Saakshi Kanwar, Member, Placement Cell, GIM, says, "Our institute had long-standing ties with the companies that have visited the campus this year. Though the number of recruiters in the financial sector has reduced, companies from this segment haven't stopped recruiting completely."
IIT-Chennai's Department Of Management Studies (DoMS) also reports a lesser number of companies from the financial sector, but there was an increase in the number of recruiters from other sectors.
In fact, the only difference witnessed by IITKanpur's management department is the duration of the placement process. As a member of the placement committee reveals, "Earlier, students used to be placed on the very first day, but now the process is spread over a few days. Apart from this, there has been no visible difference in terms of salary packages, profiles, etc."
V C Ravichandran, Director, Centre for University - Industry Collaboration (CUIC), Anna University, claims, "More than 90 companies have visited the university so far, though investment banks have postponed their dates. CUIC bridges the gap between industry and academia, and we have several placement and pre-placement discussions by companies from across the country. This not only helps students prepare for group discussions and interviews, but also helps them understand the needs and demands of various companies in these turbulent, economic circumstances."
Predicting the immediate future, Dr K S Pratap Kumar, Director, National Institute of Fashion Technology (NIFT), Hyderabad, mentions, "We will be starting our placement soon, but in the wake of recession, I can predict that it is going to be a challenge. With the global meltdown, the export industry is badly hit, and it is going to make things difficult. However, we are trying our level best to help our students."
Kondap adds, "Though placements will be affected due to the recession, this will only be a corrective measure in terms of the salaries that fresh management graduates have been drawing." Prof Veer Singh, Vice Chancellor, NALSAR University of Law, explains, "In the current situation, there will be more litigation cases, hence, there will be an increased need of trained, legal professionals. Legal Business Processing is witnessing an upward trend in India. Therefore, our placements will be as good as they were the last year. In fact, they might just get better this year. The final verdict can be given only after the batch passes out."
Prof Dr Uday Salunkhe, Group Director, Welingkar Institute of Management, admits, "Placing students has been more challenging this year than the past few years. A lot more strategising and effort is required in identifying and expanding the pool of companies for placements. Also, student mindsets have to be conditioned, so as to ensure that students are able to grasp the situation and plan their career moves accordingly."
INDUSTRY-ACADEMIA TIE-UPS
Realising the need for industry inputs in the curriculum of professional courses, a number of institutes had previously entered into tie-ups with professional companies. Dr Kondap says, "The tieups that we have entered into are definitely underway. For instance, we have a tie-up with Dr Reddy's, wherein we have members of the company enrolling for the executive MBA programme. Programmes like these are highly customised, and companies are keen to train potential employees to their needs and tastes. Thus, in spite of recession, there is immense scope for such tie-ups."
Other tie-ups are only in their initial stages. Professor Y V Rao, Director of NIT, Warangal, says, "Though the concept is in its infancy in India, we have signed an MoU with CPRI, Bangalore for exchange of staff in training and research. Similarly, MoUs with IBM, Accenture and TCS encourage these companies to train our students and conduct combined research on projects. Though we are steadily progressing, our main concern is to keep pace with changing technology, failing which we will turn obsolete."
THE YEAR 2008 SAW A SEA OF CHANGE IN THE EDUCATION SECTOR. A NUMBER OF TRENDS WITNESSED A BOOM, WHEREAS OTHERS FAILED TO TAKE OFF. IN THIS YEAR-END ISSUE, HNN ANALYSES THE MOST PROMINENT TRENDS IN THE EDUCATION SEGMENT IN 2008.
As news of the economic slowdown hit Indian shores, the education sector, along with many other industries, underwent several changes. Whether it was students temporarily abandoning their study abroad plans, professionals choosing to go back to school, in order to spruce up their qualifications, institutes reporting a negligible slowdown in their placement rates, or the undecided fate of industry-academia tie-ups, there were both triumphs and tribulations in 2008.
STUDY ABROAD SENTIMENTS
While recession is poi sed to affect India in the long run, it might be a little early to determine how it is likely to affect Indian students' study abroad decisions. Hazel Shiromoni, Vice-President, CECN Global Schools, corroborates this view, saying, "Only after a span of a few months, can a pattern be identified. However, it is crucial to note that student enquiries for some courses, such as aviation, hospitality, travel and tourism are already going down." She goes on to add that the mindset of people, in terms of pursuing an education abroad will not change, and people from affluent sections of society will continue to send their children abroad. However, for the middle-class, particularly for those, who have invested in stocks, sending their children abroad may no longer be an affordable proposition.
Ajit Motwani, Director (India), Institute of International Education (IIE), reveals, "Most students applied for the fall session (September) before recession hit India, and were unlikely to be affected by it. Further, the spring semester has a small intake, so any real change in applications will only be visible in the fall session next year, when the affects of recession sink in."
Purti Simon, an alumni of St Xavier's College Kolkata, says, "I was forced to put my plans to study abroad on hold. It calls for a large expenditure and one would obviously look at recouping the investment. In the present scenario, international students are the first on the chopping block. I chose to postpone my plans till the economic situations are less volatile." However, while some students put their study abroad plans on hold, there were others who decided to go ahead with them anyway. Rini Mukherjee, who is pursuing Ancient Greek at the University of Cyprus, avers, "I continued with what I needed to do. If the recessional situation can subside in a year or two, it can also be reaffirmed. This is a good time to complete the academic experience, and hopefully, by the time my course ends, the economic situation will be better. If it isn't, there will tough competition, a phenomenon not exactly unknown to Indians."
However, it is noteworthy that the applications for a number of foreign universities in the UK, Australia and New Zealand, have only increased in the current year. Surya Ganesh Valmiki, Valmiki Group, discloses, "There has been a 60 per cent rise in the number of applications to universities in the UK. Also, Australia has become the preferred education destination because of its simpler visa process, as well as bright prospects of permanent residency. 48,500 visas were granted to Indian students, who had applied to universities in Australia." Moreover, Marina Gandhi, Head of East India, Education UK, British Council, also confirms an increase in the number of students, who had applied for further studies in the UK over that last year.
On the other hand, while the US is still one of the most favoured destinations, it is crucial to note that the US government rejected 70 per cent of visa applications this year. A major factor that adds to students woes is that a US visa is not easily acquired.
The choice of courses also did not witness any major changes. As Shekhar Niyogi, Education Consultant, Education Unlimited Inc, says, "The preferred programmes continue to be engineering, biological sciences and MBA."
BACK TO SCHOOL
B-Schools reported an increase in the number of applications for their full-time and executive MBA programmes. Dr Kondap, Vice- Chancellor, NMIMS University, reports that the institute expects a whopping increase of 10,000 more applications to their full-time MBA programme for the next year. However, Kondap is quick to add that the recession and the number of applications this year are mutually exclusive factors, although he agrees that recession may be the reason for the rise in the number of applications to the Executive MBA programmes.
Singapore-based Nanyang Technological University's Nanyang Business School too has already received 'more than double' the applications it received in December last year.
The number of freshmen at IIM-Lucknow in 2008 comprised only six per cent of graduates, without any professional experience. The rest have a minimum of two years of experience, and for various reasons, have decided to go back to school. THE Faculty of Management Studies (FMS), Delhi University, has received a record number of applications. This year, FMS received 70,000 applications for around 200 seats, up from 60,000 applications last year. However, J K Mitra, Dean, FMS, believes that the recession may not necessarily be behind the rise in the number of applications. He clarifies, "One can't be certain about the degree of influence that recession has exerted on students, who want to be admitted to the regular course. However, there will certainly be an impact on the number of applications for the part-time MBA programme at the institute."
Also, according to Anil Tandon, Principal, ICFAI, students prefer to go back to school now because they are aware that they would need to build their qualifications in order to have that extra edge if they want to excel.
While discussing the trend of going abroad, Dipanwita Ghosh, a Master's in Journalism student from American University, Washington, DC, says, "In order to tide over this phase, students are opting for courses, which require longer gestation periods, like a PhD or an MPhil. This is an attempt to simply pass the time in the most fruitful manner possible."
Pondering over the issue, Prafulla Agnihotri, Faculty, Marketing, IIM Calcutta, says, "The recession has not really affected the decisions of students, who want to pursue an MBA. Though there is no clear picture at hand now, the perceivable change will be palpable from the next financial year."
DIP IN PLACEMENTS?
The final placement season is currently underway in some B-Schools and management departments, and analysts are currently speculating about the possible effect of recession on placements. So far, students at these B-Schools are by and large, content with the placement opportunities.
The management departments that have started placements for their final batch include the Indian Institutes of Technology (IITs) at Chennai and Kanpur and Goa Institute of Management (GIM). According to the placement committee members from these institutes, apart from a 'dip' in financial sector companies, the profile and salary packages offered to students have 'stayed the same' and, in some sectors, they have become even better. Discussing the number of companies visiting the campus, Saakshi Kanwar, Member, Placement Cell, GIM, says, "Our institute had long-standing ties with the companies that have visited the campus this year. Though the number of recruiters in the financial sector has reduced, companies from this segment haven't stopped recruiting completely."
IIT-Chennai's Department Of Management Studies (DoMS) also reports a lesser number of companies from the financial sector, but there was an increase in the number of recruiters from other sectors.
In fact, the only difference witnessed by IITKanpur's management department is the duration of the placement process. As a member of the placement committee reveals, "Earlier, students used to be placed on the very first day, but now the process is spread over a few days. Apart from this, there has been no visible difference in terms of salary packages, profiles, etc."
V C Ravichandran, Director, Centre for University - Industry Collaboration (CUIC), Anna University, claims, "More than 90 companies have visited the university so far, though investment banks have postponed their dates. CUIC bridges the gap between industry and academia, and we have several placement and pre-placement discussions by companies from across the country. This not only helps students prepare for group discussions and interviews, but also helps them understand the needs and demands of various companies in these turbulent, economic circumstances."
Predicting the immediate future, Dr K S Pratap Kumar, Director, National Institute of Fashion Technology (NIFT), Hyderabad, mentions, "We will be starting our placement soon, but in the wake of recession, I can predict that it is going to be a challenge. With the global meltdown, the export industry is badly hit, and it is going to make things difficult. However, we are trying our level best to help our students."
Kondap adds, "Though placements will be affected due to the recession, this will only be a corrective measure in terms of the salaries that fresh management graduates have been drawing." Prof Veer Singh, Vice Chancellor, NALSAR University of Law, explains, "In the current situation, there will be more litigation cases, hence, there will be an increased need of trained, legal professionals. Legal Business Processing is witnessing an upward trend in India. Therefore, our placements will be as good as they were the last year. In fact, they might just get better this year. The final verdict can be given only after the batch passes out."
Prof Dr Uday Salunkhe, Group Director, Welingkar Institute of Management, admits, "Placing students has been more challenging this year than the past few years. A lot more strategising and effort is required in identifying and expanding the pool of companies for placements. Also, student mindsets have to be conditioned, so as to ensure that students are able to grasp the situation and plan their career moves accordingly."
INDUSTRY-ACADEMIA TIE-UPS
Realising the need for industry inputs in the curriculum of professional courses, a number of institutes had previously entered into tie-ups with professional companies. Dr Kondap says, "The tieups that we have entered into are definitely underway. For instance, we have a tie-up with Dr Reddy's, wherein we have members of the company enrolling for the executive MBA programme. Programmes like these are highly customised, and companies are keen to train potential employees to their needs and tastes. Thus, in spite of recession, there is immense scope for such tie-ups."
Other tie-ups are only in their initial stages. Professor Y V Rao, Director of NIT, Warangal, says, "Though the concept is in its infancy in India, we have signed an MoU with CPRI, Bangalore for exchange of staff in training and research. Similarly, MoUs with IBM, Accenture and TCS encourage these companies to train our students and conduct combined research on projects. Though we are steadily progressing, our main concern is to keep pace with changing technology, failing which we will turn obsolete."
2008: A Watershed Year for Judiciary
By M H Ahssan
For long, judiciary had been the public’s favourite whipping boy for its reluctance to look inwards and weed out black sheep from among the judges. Its holy cow approach towards the corrupt in the ranks, coupled with the coercive ‘contempt of court’ powers, had even forced staunch detractors to talk corrupt judges in hushed voices in the corridors of the Supreme Court.
It is not that the judiciary headed by the Chief Justice of India had not been taking action against corrupt judges. But looking back, this year could well be the watershed, for it took surgical steps to chop cancerous growths in the judicial limbs.
It all started with the Ghaziabad PF scam early this year. In the list of suspects were 35 judges — one from the Supreme Court, 11 from High Courts and 23 from lower courts. When a petition reached the SC for a CBI probe, few put their money on a positive outcome, for everyone knew the judiciary’s ability to sweep things under the carpet.
Not this time, though. The SC took the opportunity to embark on a rarelytraversed path. Not only did it order a CBI probe but also saw to it that a fair probe took place by refusing to extend the tenure of an additional judge of Allahabad HC and recommending transfers of four more judges — three from Allahabad HC and one from Uttarakhand HC.
If the decision to hear the PF scam petition in open court left the long closed inner room door of judiciary slightly ajar for the public to peep into, the subsequent actions and corrective measures certainly beamed a ray of hope, as for the first time there was a resolve not to sweep things under the carpet but set things in order.
At a time when the apex court was dealing with the PF scam, the judiciary got smeared by another scam — cash delivered at a Punjab and Haryana HC judge’s residence “mistakenly” by none other than a senior state law officer. Again, it displayed steely nerves to order a CBI probe.
Prior to this, it had recommended the government to impeach a Calcutta HC judge who stubbornly refused to resign despite being indicted by the in-house inquiry mechanism of having indulged in corrupt practices. Such a drastic step, which is historic too, showed that the CJI and the collegium of judges in the SC did not have a weak stomach when it came to taking action against the corrupt within the ranks.
Transparency International’s ‘Global Corruption Report 2007 — Corruption in Judicial System’ succinctly outlines the influences that could breed corruption in judiciary. “Once influence that can lead judges to make decisions based on factors other than the facts and applicable law is fear of retribution by political leaders, appellate judges, powerful individuals, the public and media.” Apart from action against corrupt judges, there is a crying need to overhaul the system so that judiciary’s public image remains intact. In this context, the Global Corruption Report’s suggestion to weed out corruption would not be out of place.
“It is possible to mitigate the factors that contribute to judicial corruption, but solutions must be tailored to national, or even sub-national, realities, and are successful when part of an integrated reform plan,” it said.
For long, judiciary had been the public’s favourite whipping boy for its reluctance to look inwards and weed out black sheep from among the judges. Its holy cow approach towards the corrupt in the ranks, coupled with the coercive ‘contempt of court’ powers, had even forced staunch detractors to talk corrupt judges in hushed voices in the corridors of the Supreme Court.
It is not that the judiciary headed by the Chief Justice of India had not been taking action against corrupt judges. But looking back, this year could well be the watershed, for it took surgical steps to chop cancerous growths in the judicial limbs.
It all started with the Ghaziabad PF scam early this year. In the list of suspects were 35 judges — one from the Supreme Court, 11 from High Courts and 23 from lower courts. When a petition reached the SC for a CBI probe, few put their money on a positive outcome, for everyone knew the judiciary’s ability to sweep things under the carpet.
Not this time, though. The SC took the opportunity to embark on a rarelytraversed path. Not only did it order a CBI probe but also saw to it that a fair probe took place by refusing to extend the tenure of an additional judge of Allahabad HC and recommending transfers of four more judges — three from Allahabad HC and one from Uttarakhand HC.
If the decision to hear the PF scam petition in open court left the long closed inner room door of judiciary slightly ajar for the public to peep into, the subsequent actions and corrective measures certainly beamed a ray of hope, as for the first time there was a resolve not to sweep things under the carpet but set things in order.
At a time when the apex court was dealing with the PF scam, the judiciary got smeared by another scam — cash delivered at a Punjab and Haryana HC judge’s residence “mistakenly” by none other than a senior state law officer. Again, it displayed steely nerves to order a CBI probe.
Prior to this, it had recommended the government to impeach a Calcutta HC judge who stubbornly refused to resign despite being indicted by the in-house inquiry mechanism of having indulged in corrupt practices. Such a drastic step, which is historic too, showed that the CJI and the collegium of judges in the SC did not have a weak stomach when it came to taking action against the corrupt within the ranks.
Transparency International’s ‘Global Corruption Report 2007 — Corruption in Judicial System’ succinctly outlines the influences that could breed corruption in judiciary. “Once influence that can lead judges to make decisions based on factors other than the facts and applicable law is fear of retribution by political leaders, appellate judges, powerful individuals, the public and media.” Apart from action against corrupt judges, there is a crying need to overhaul the system so that judiciary’s public image remains intact. In this context, the Global Corruption Report’s suggestion to weed out corruption would not be out of place.
“It is possible to mitigate the factors that contribute to judicial corruption, but solutions must be tailored to national, or even sub-national, realities, and are successful when part of an integrated reform plan,” it said.
BJP Finalises Names for 12 Lok Sabha Seats
By Swati Reddy
The Bharatiya Janata Party on Sunday finalised its first list of candidates for 12 Lok Sabha seats in the ensuing general elections even as the party’s national spokesman Prakash Javdekar denied approaching any party or vice-versa regarding electoral alliances.
The list includes Ch Vidyasagar Rao (Karimnagar), N Indrasena Reddy (Malkajgiri), Badaru Dattatreya (Secunderabad), Baddam Bal Reddy (Chevella), Jhansi Rani (Mahbubnagar), K Sarvarayudu (Rajahmundry), D V Subba Rao (Visakhapatnam), U V Krishnam Raju (Narsapur), K Shanta Reddy (Rajampeta), Naresh (Hindupur), Y Raghunath Babu (Guntur) and D Ravindra Babu(Srikakulam).
Senior leaders Prakash Javdekar, M Venkaiah Naidu, Bangaru Laxman, V Rama Rao, B Dattatreya and others finalised the first list and the electoral strategy to be adopted in the state for the next general elections. It is learnt that the national leaders who attended the three-hour state election committee meeting took a considerate view of the state leaders’ submission that BJP’s chances in 110 Assembly constituencies were very strong.
Meanwhile, sources said BJP national leaders were having elaborate discussions with the new political parties (read as Prajarajyam and Nava Telangana Party) on the likely alliance to be adopted in the Assembly and Parliamentary elections.
State party president B Dattatreya however refused to confirm the news saying all announcements regarding elections and announcement of candidates would be made by the BJP parliamentary board.
Earlier, Prakash Javdekar told media that party’s state office-bearers meeting and election committee meeting had extensive discussions on the prevailing political scenario in the state. He said the party would soon announce a detailed schedule for a string of programmes to be taken up over the next 50 days to reach out to the people.
The BJP spokesperson said the issue of statehood to Telangana would be top on the party’s agenda, apart from issues of price rise, terrorism and corruption. As part of the programme, L K Advani would address a meeting each in Karimnagar, Guntur and Madanapalle before electioneering.
Taking a dig at the Congress rule in the state, he said chief minister Y S Rajasekhara Reddy had broken all records regarding corruption and very soon he would find a place in the Guinness Book of World Records and enumerate himself as the ‘master of corruption’. “No chief minister in the country since Independence has had such a dubious distinction regarding unabashed corruption,” he alleged. The BJP spokesperson demanded a special CAG inspection of all the irrigation projects and public works taken up in the state after Y S Rajasekhara Reddy became the chief minister.
The Bharatiya Janata Party on Sunday finalised its first list of candidates for 12 Lok Sabha seats in the ensuing general elections even as the party’s national spokesman Prakash Javdekar denied approaching any party or vice-versa regarding electoral alliances.
The list includes Ch Vidyasagar Rao (Karimnagar), N Indrasena Reddy (Malkajgiri), Badaru Dattatreya (Secunderabad), Baddam Bal Reddy (Chevella), Jhansi Rani (Mahbubnagar), K Sarvarayudu (Rajahmundry), D V Subba Rao (Visakhapatnam), U V Krishnam Raju (Narsapur), K Shanta Reddy (Rajampeta), Naresh (Hindupur), Y Raghunath Babu (Guntur) and D Ravindra Babu(Srikakulam).
Senior leaders Prakash Javdekar, M Venkaiah Naidu, Bangaru Laxman, V Rama Rao, B Dattatreya and others finalised the first list and the electoral strategy to be adopted in the state for the next general elections. It is learnt that the national leaders who attended the three-hour state election committee meeting took a considerate view of the state leaders’ submission that BJP’s chances in 110 Assembly constituencies were very strong.
Meanwhile, sources said BJP national leaders were having elaborate discussions with the new political parties (read as Prajarajyam and Nava Telangana Party) on the likely alliance to be adopted in the Assembly and Parliamentary elections.
State party president B Dattatreya however refused to confirm the news saying all announcements regarding elections and announcement of candidates would be made by the BJP parliamentary board.
Earlier, Prakash Javdekar told media that party’s state office-bearers meeting and election committee meeting had extensive discussions on the prevailing political scenario in the state. He said the party would soon announce a detailed schedule for a string of programmes to be taken up over the next 50 days to reach out to the people.
The BJP spokesperson said the issue of statehood to Telangana would be top on the party’s agenda, apart from issues of price rise, terrorism and corruption. As part of the programme, L K Advani would address a meeting each in Karimnagar, Guntur and Madanapalle before electioneering.
Taking a dig at the Congress rule in the state, he said chief minister Y S Rajasekhara Reddy had broken all records regarding corruption and very soon he would find a place in the Guinness Book of World Records and enumerate himself as the ‘master of corruption’. “No chief minister in the country since Independence has had such a dubious distinction regarding unabashed corruption,” he alleged. The BJP spokesperson demanded a special CAG inspection of all the irrigation projects and public works taken up in the state after Y S Rajasekhara Reddy became the chief minister.
BJP Finalises Names for 12 Lok Sabha Seats
By Swati Reddy
The Bharatiya Janata Party on Sunday finalised its first list of candidates for 12 Lok Sabha seats in the ensuing general elections even as the party’s national spokesman Prakash Javdekar denied approaching any party or vice-versa regarding electoral alliances.
The list includes Ch Vidyasagar Rao (Karimnagar), N Indrasena Reddy (Malkajgiri), Badaru Dattatreya (Secunderabad), Baddam Bal Reddy (Chevella), Jhansi Rani (Mahbubnagar), K Sarvarayudu (Rajahmundry), D V Subba Rao (Visakhapatnam), U V Krishnam Raju (Narsapur), K Shanta Reddy (Rajampeta), Naresh (Hindupur), Y Raghunath Babu (Guntur) and D Ravindra Babu(Srikakulam).
Senior leaders Prakash Javdekar, M Venkaiah Naidu, Bangaru Laxman, V Rama Rao, B Dattatreya and others finalised the first list and the electoral strategy to be adopted in the state for the next general elections. It is learnt that the national leaders who attended the three-hour state election committee meeting took a considerate view of the state leaders’ submission that BJP’s chances in 110 Assembly constituencies were very strong.
Meanwhile, sources said BJP national leaders were having elaborate discussions with the new political parties (read as Prajarajyam and Nava Telangana Party) on the likely alliance to be adopted in the Assembly and Parliamentary elections.
State party president B Dattatreya however refused to confirm the news saying all announcements regarding elections and announcement of candidates would be made by the BJP parliamentary board.
Earlier, Prakash Javdekar told media that party’s state office-bearers meeting and election committee meeting had extensive discussions on the prevailing political scenario in the state. He said the party would soon announce a detailed schedule for a string of programmes to be taken up over the next 50 days to reach out to the people.
The BJP spokesperson said the issue of statehood to Telangana would be top on the party’s agenda, apart from issues of price rise, terrorism and corruption. As part of the programme, L K Advani would address a meeting each in Karimnagar, Guntur and Madanapalle before electioneering.
Taking a dig at the Congress rule in the state, he said chief minister Y S Rajasekhara Reddy had broken all records regarding corruption and very soon he would find a place in the Guinness Book of World Records and enumerate himself as the ‘master of corruption’. “No chief minister in the country since Independence has had such a dubious distinction regarding unabashed corruption,” he alleged. The BJP spokesperson demanded a special CAG inspection of all the irrigation projects and public works taken up in the state after Y S Rajasekhara Reddy became the chief minister.
The Bharatiya Janata Party on Sunday finalised its first list of candidates for 12 Lok Sabha seats in the ensuing general elections even as the party’s national spokesman Prakash Javdekar denied approaching any party or vice-versa regarding electoral alliances.
The list includes Ch Vidyasagar Rao (Karimnagar), N Indrasena Reddy (Malkajgiri), Badaru Dattatreya (Secunderabad), Baddam Bal Reddy (Chevella), Jhansi Rani (Mahbubnagar), K Sarvarayudu (Rajahmundry), D V Subba Rao (Visakhapatnam), U V Krishnam Raju (Narsapur), K Shanta Reddy (Rajampeta), Naresh (Hindupur), Y Raghunath Babu (Guntur) and D Ravindra Babu(Srikakulam).
Senior leaders Prakash Javdekar, M Venkaiah Naidu, Bangaru Laxman, V Rama Rao, B Dattatreya and others finalised the first list and the electoral strategy to be adopted in the state for the next general elections. It is learnt that the national leaders who attended the three-hour state election committee meeting took a considerate view of the state leaders’ submission that BJP’s chances in 110 Assembly constituencies were very strong.
Meanwhile, sources said BJP national leaders were having elaborate discussions with the new political parties (read as Prajarajyam and Nava Telangana Party) on the likely alliance to be adopted in the Assembly and Parliamentary elections.
State party president B Dattatreya however refused to confirm the news saying all announcements regarding elections and announcement of candidates would be made by the BJP parliamentary board.
Earlier, Prakash Javdekar told media that party’s state office-bearers meeting and election committee meeting had extensive discussions on the prevailing political scenario in the state. He said the party would soon announce a detailed schedule for a string of programmes to be taken up over the next 50 days to reach out to the people.
The BJP spokesperson said the issue of statehood to Telangana would be top on the party’s agenda, apart from issues of price rise, terrorism and corruption. As part of the programme, L K Advani would address a meeting each in Karimnagar, Guntur and Madanapalle before electioneering.
Taking a dig at the Congress rule in the state, he said chief minister Y S Rajasekhara Reddy had broken all records regarding corruption and very soon he would find a place in the Guinness Book of World Records and enumerate himself as the ‘master of corruption’. “No chief minister in the country since Independence has had such a dubious distinction regarding unabashed corruption,” he alleged. The BJP spokesperson demanded a special CAG inspection of all the irrigation projects and public works taken up in the state after Y S Rajasekhara Reddy became the chief minister.
Satyam Rajus Looking for Strategic Partner?
By M H Ahssan
Faced with a virtual revolt from various stakeholders, including the very same independent directors who had cleared the controversial Maytas buyout proposal, the Rajus of Satyam Computers are actively considering inducting a strategic partner and selling out their shares in the $ 2-billion IT company.
Late on Saturday evening, the company while postponing its board meeting from December 29 to Jan 10, announced the appointment of DSP Merill Lynch to advise on "strategic options to enhance shareholder value." A company release also talked of a "possible dilution of promoters' stake in the company." Analysts said that these two points when read together could mean that the Rajus are looking at an exit route and bringing in other investors. "The promoters own only 8.6 per cent of the company's shares. That is very low. Dilution could mean that they go out," averred Monotosh Sinha, executive director of Centrum Capital.
Satyam will also recast its board of directors: some board members are expected to exit, while some new faces could come on board. The Satyam release suggested that the next board meeting will consider "measures to strengthen the company's goverance structure, including the size and altering the composition of the board." Facing flak from all quarters, ISB dean M Rammohan Rao, who chaired the controversial meeting that okayed the Maytas deal, is expected to leave the board. But father of Pentium, Vinod Dham, who told TOI that he had asked for a special board meeting to consider all matters pertaining to the company is expected to continue and play a pivotal role. "He is a well-known name in technology circles in the US. And the stockmarket there would react positively to his continuance on the board," an analyst pointed out. Dham, along with Harvard Business School professor Krishna Palepu, is expected to physically attend the board meeting: in the past, the two usually participated through video conferencing.
Sources expected that if the sell-out by Satyam does not happen or till such times that it happens, B Rama Raju, the co founder and brother of Ramalinga Raju and managing director of the company, will step down from his executive position and make way for a salaried professional as managing director. "He will continue as a non executive director," sources averred. Similarly, it is expected that Ramalinga Raju might himself become a non executive chairman of the Satyam board.
IBM likely to takeover Satyam?
Stories about the disinclination of the Rajus to continue with Satyam Computers have been doing the rounds for the last two years with the constant buzz being that IBM would possibly takeover the company. “Though constantly denied, the fact that these tales persisted only shows that there cannot be smoke without fire,” says a top Hyderabad businessman known to Ramalinga Raju for long.
Raju who started off his entrepreneurial career in the construction business has a fascination for the real estate and related industry, say people who know him. This is precisely the reason why Maytas (which is Satyam spelt in reverse) was spawned by Ramalinga Raju a few years ago. Maytas has now grown big and comprises Maytas Infra and Maytas Properties. The former’s order book is over Rs 12,000 crore besides the Hyderabad Metro Rail project.
Satyam Computers has reserves of Rs 8500 crore. “All indications are that they want to exit, but by selling out they will lose control of this money. That is why I cannot figure out why they want to sell out,” a chief financial officer of a top corporate told TOI. “Unless you see it as an instance of the promoters being potentially forced out of the company by the shareholders. But nothing similar has happened in India before,” said Amitabha Guha, former deputy managing director of SBI.
Faced with a virtual revolt from various stakeholders, including the very same independent directors who had cleared the controversial Maytas buyout proposal, the Rajus of Satyam Computers are actively considering inducting a strategic partner and selling out their shares in the $ 2-billion IT company.
Late on Saturday evening, the company while postponing its board meeting from December 29 to Jan 10, announced the appointment of DSP Merill Lynch to advise on "strategic options to enhance shareholder value." A company release also talked of a "possible dilution of promoters' stake in the company." Analysts said that these two points when read together could mean that the Rajus are looking at an exit route and bringing in other investors. "The promoters own only 8.6 per cent of the company's shares. That is very low. Dilution could mean that they go out," averred Monotosh Sinha, executive director of Centrum Capital.
Satyam will also recast its board of directors: some board members are expected to exit, while some new faces could come on board. The Satyam release suggested that the next board meeting will consider "measures to strengthen the company's goverance structure, including the size and altering the composition of the board." Facing flak from all quarters, ISB dean M Rammohan Rao, who chaired the controversial meeting that okayed the Maytas deal, is expected to leave the board. But father of Pentium, Vinod Dham, who told TOI that he had asked for a special board meeting to consider all matters pertaining to the company is expected to continue and play a pivotal role. "He is a well-known name in technology circles in the US. And the stockmarket there would react positively to his continuance on the board," an analyst pointed out. Dham, along with Harvard Business School professor Krishna Palepu, is expected to physically attend the board meeting: in the past, the two usually participated through video conferencing.
Sources expected that if the sell-out by Satyam does not happen or till such times that it happens, B Rama Raju, the co founder and brother of Ramalinga Raju and managing director of the company, will step down from his executive position and make way for a salaried professional as managing director. "He will continue as a non executive director," sources averred. Similarly, it is expected that Ramalinga Raju might himself become a non executive chairman of the Satyam board.
IBM likely to takeover Satyam?
Stories about the disinclination of the Rajus to continue with Satyam Computers have been doing the rounds for the last two years with the constant buzz being that IBM would possibly takeover the company. “Though constantly denied, the fact that these tales persisted only shows that there cannot be smoke without fire,” says a top Hyderabad businessman known to Ramalinga Raju for long.
Raju who started off his entrepreneurial career in the construction business has a fascination for the real estate and related industry, say people who know him. This is precisely the reason why Maytas (which is Satyam spelt in reverse) was spawned by Ramalinga Raju a few years ago. Maytas has now grown big and comprises Maytas Infra and Maytas Properties. The former’s order book is over Rs 12,000 crore besides the Hyderabad Metro Rail project.
Satyam Computers has reserves of Rs 8500 crore. “All indications are that they want to exit, but by selling out they will lose control of this money. That is why I cannot figure out why they want to sell out,” a chief financial officer of a top corporate told TOI. “Unless you see it as an instance of the promoters being potentially forced out of the company by the shareholders. But nothing similar has happened in India before,” said Amitabha Guha, former deputy managing director of SBI.
Satyam Rajus Looking for Strategic Partner?
By M H Ahssan
Faced with a virtual revolt from various stakeholders, including the very same independent directors who had cleared the controversial Maytas buyout proposal, the Rajus of Satyam Computers are actively considering inducting a strategic partner and selling out their shares in the $ 2-billion IT company.
Late on Saturday evening, the company while postponing its board meeting from December 29 to Jan 10, announced the appointment of DSP Merill Lynch to advise on "strategic options to enhance shareholder value." A company release also talked of a "possible dilution of promoters' stake in the company." Analysts said that these two points when read together could mean that the Rajus are looking at an exit route and bringing in other investors. "The promoters own only 8.6 per cent of the company's shares. That is very low. Dilution could mean that they go out," averred Monotosh Sinha, executive director of Centrum Capital.
Satyam will also recast its board of directors: some board members are expected to exit, while some new faces could come on board. The Satyam release suggested that the next board meeting will consider "measures to strengthen the company's goverance structure, including the size and altering the composition of the board." Facing flak from all quarters, ISB dean M Rammohan Rao, who chaired the controversial meeting that okayed the Maytas deal, is expected to leave the board. But father of Pentium, Vinod Dham, who told TOI that he had asked for a special board meeting to consider all matters pertaining to the company is expected to continue and play a pivotal role. "He is a well-known name in technology circles in the US. And the stockmarket there would react positively to his continuance on the board," an analyst pointed out. Dham, along with Harvard Business School professor Krishna Palepu, is expected to physically attend the board meeting: in the past, the two usually participated through video conferencing.
Sources expected that if the sell-out by Satyam does not happen or till such times that it happens, B Rama Raju, the co founder and brother of Ramalinga Raju and managing director of the company, will step down from his executive position and make way for a salaried professional as managing director. "He will continue as a non executive director," sources averred. Similarly, it is expected that Ramalinga Raju might himself become a non executive chairman of the Satyam board.
IBM likely to takeover Satyam?
Stories about the disinclination of the Rajus to continue with Satyam Computers have been doing the rounds for the last two years with the constant buzz being that IBM would possibly takeover the company. “Though constantly denied, the fact that these tales persisted only shows that there cannot be smoke without fire,” says a top Hyderabad businessman known to Ramalinga Raju for long.
Raju who started off his entrepreneurial career in the construction business has a fascination for the real estate and related industry, say people who know him. This is precisely the reason why Maytas (which is Satyam spelt in reverse) was spawned by Ramalinga Raju a few years ago. Maytas has now grown big and comprises Maytas Infra and Maytas Properties. The former’s order book is over Rs 12,000 crore besides the Hyderabad Metro Rail project.
Satyam Computers has reserves of Rs 8500 crore. “All indications are that they want to exit, but by selling out they will lose control of this money. That is why I cannot figure out why they want to sell out,” a chief financial officer of a top corporate told TOI. “Unless you see it as an instance of the promoters being potentially forced out of the company by the shareholders. But nothing similar has happened in India before,” said Amitabha Guha, former deputy managing director of SBI.
Faced with a virtual revolt from various stakeholders, including the very same independent directors who had cleared the controversial Maytas buyout proposal, the Rajus of Satyam Computers are actively considering inducting a strategic partner and selling out their shares in the $ 2-billion IT company.
Late on Saturday evening, the company while postponing its board meeting from December 29 to Jan 10, announced the appointment of DSP Merill Lynch to advise on "strategic options to enhance shareholder value." A company release also talked of a "possible dilution of promoters' stake in the company." Analysts said that these two points when read together could mean that the Rajus are looking at an exit route and bringing in other investors. "The promoters own only 8.6 per cent of the company's shares. That is very low. Dilution could mean that they go out," averred Monotosh Sinha, executive director of Centrum Capital.
Satyam will also recast its board of directors: some board members are expected to exit, while some new faces could come on board. The Satyam release suggested that the next board meeting will consider "measures to strengthen the company's goverance structure, including the size and altering the composition of the board." Facing flak from all quarters, ISB dean M Rammohan Rao, who chaired the controversial meeting that okayed the Maytas deal, is expected to leave the board. But father of Pentium, Vinod Dham, who told TOI that he had asked for a special board meeting to consider all matters pertaining to the company is expected to continue and play a pivotal role. "He is a well-known name in technology circles in the US. And the stockmarket there would react positively to his continuance on the board," an analyst pointed out. Dham, along with Harvard Business School professor Krishna Palepu, is expected to physically attend the board meeting: in the past, the two usually participated through video conferencing.
Sources expected that if the sell-out by Satyam does not happen or till such times that it happens, B Rama Raju, the co founder and brother of Ramalinga Raju and managing director of the company, will step down from his executive position and make way for a salaried professional as managing director. "He will continue as a non executive director," sources averred. Similarly, it is expected that Ramalinga Raju might himself become a non executive chairman of the Satyam board.
IBM likely to takeover Satyam?
Stories about the disinclination of the Rajus to continue with Satyam Computers have been doing the rounds for the last two years with the constant buzz being that IBM would possibly takeover the company. “Though constantly denied, the fact that these tales persisted only shows that there cannot be smoke without fire,” says a top Hyderabad businessman known to Ramalinga Raju for long.
Raju who started off his entrepreneurial career in the construction business has a fascination for the real estate and related industry, say people who know him. This is precisely the reason why Maytas (which is Satyam spelt in reverse) was spawned by Ramalinga Raju a few years ago. Maytas has now grown big and comprises Maytas Infra and Maytas Properties. The former’s order book is over Rs 12,000 crore besides the Hyderabad Metro Rail project.
Satyam Computers has reserves of Rs 8500 crore. “All indications are that they want to exit, but by selling out they will lose control of this money. That is why I cannot figure out why they want to sell out,” a chief financial officer of a top corporate told TOI. “Unless you see it as an instance of the promoters being potentially forced out of the company by the shareholders. But nothing similar has happened in India before,” said Amitabha Guha, former deputy managing director of SBI.
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